SEC to probe rapid growth of ETF industry

Accounts for 30% of all US shares traded

The US Securities and Exchange Commission (SEC) is set to commence a large-scale review of exchange-traded funds, amid concerns the rapid growth of these vehicles may be increasing market volatility.

The SEC will look at every aspect of the industry, in particular how ETFs are interconnected with underlying stocks and the futures market, according to the Financial Times. Assets in fixed income ETFs surge to record high in 2016 The paper reports that last year the SEC formed a group to examine the issues surrounding ETPs. In May, Mary Jo White, the chair of the SEC, said: "The SEC has taken a number of initial actions to share our thinking on some of these issues, and further regulatory steps beyond disclosures may be needed to address some of these issues." In the US, ETF as...